Roche 1st half boosted by demand for diagnostics

Swiss pharma giant Roche (ROG: SIX) posted financial results this morning showing that first-half 2021 net profit rose 2% to 8.22 billion Swiss francs ($8.96 billion) and sales increased by 8% at constant exchange rates to a better-than expected 30.71 billion francs. Core earnings per share rose 6% to 10.56 francs. Roche’s shares were down 1.3% at 386.40 francs by late morning.

However, within these figures, sales of Roche’s Pharmaceutical Division were down 7% at 21.67 billion francs (-3%at cer), impacted by biosimilars competition on sales of the established cancer medicines, while its Diagnostics Division rocketed 49% (+51% cer) to 4.33 billion francs, boosted by heavy demand for COVID-19 tests.

Outlook confirmed for 2021

Despite the continued strong impact of biosimilars, sales are expected to grow in the low- to mid-single digit range, at constant exchange rates. Core earnings per share are targeted to grow broadly in line with sales, at constant exchange rates. Roche expects to increase its dividend in Swiss francs further.